These ratings are restated from the Ratings
Report indicated above, which was produced outside the European Union, and
therefore are not issued by The Economist Intelligence Unit credit rating
agency, which is registered in accordance with Regulation (EC) No 1060/2009 of
16 September 2009, on credit rating agencies, as amended. This report and the
ratings, therefore, are not issued pursuant to such Regulation and do not fall
within its scope.

Sovereign risk has a B rating. External conditions and political resistance to further austerity remain challenging. Jordan will retain US loan guarantees and access to foreign borrowing at concessional rates from multilateral institutions, and it will be able to meet its repayments fully. The rating is constrained by wide fiscal deficits and high public debt, but the government is trying to address these issues.

Currency risk

Currency risk is rated at B. The dinar will stay pegged to the US dollar. The large current-account deficit will be partly financed by inward foreign direct investment, debt inflows and donor support. Foreign reserves are rising and are equivalent to around eight months of import cover, which should provide sufficient support to maintain the peg.

Slow political reform and the government's fiscal consolidation measures to tackle economic difficulties will lead to sporadic unrest, but the king appears firmly in control. Islamist parties are becoming more engaged with the political system, but their access to power will be limited. Regional conflicts will pose security challenges and could threaten stability.

Economic structure risk

Public debt is high, having risen strongly in recent years, and Jordan depends on inflows of foreign aid and workers' remittances to finance its large fiscal and current-account deficits. It has limited natural resources and relies heavily on imported oil and gas, although it has enjoyed considerable success recently in diversifying its energy sources and switching to renewables.